Question asked by Claire Powell 9 years ago
The company has purchased a used Van and paid a deposit ( which includes the whole of the VAT element of the Van) balance of payments with Finance Company. How can I account for the initial deposit and claim back the VAT in the current return.
Hi Claire
Create a bill for the purchase price (including VAT) payable to the supplier.
Mark the deposit being paid off the bill.
Create a new HP loan account (Money > Bank Account > Add).
Pay the remainder of the bill using the HP account.
Class the monthly HP payments as transfers between your bank account and the new loan account.
Post a monthly or annual adjustment for the interest element.
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